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I can answer the last question easily. If the supply of bitcoins rises faster than the real value of the debt they represent, their nominal value against the do
by jamesaguilar 14y ago
I can answer the last question easily. If the supply of bitcoins rises faster than the real value of the debt they represent, their nominal value against the dollar will fall.
- maaku 14y agoExcept that this generation rate halving in price is a predictable, known event, and therefore already factored into the price of BTC.
- elemeno 14y agoI'd qualify as =might= be factored into the price of BTC. Whether it is or not depends in (large?) part on the financial acumen of people trading BTC and if they're bothering to model what the effects will be.
- jamesaguilar 14y agoIf you assume efficient markets, yes. Nothing I've seen about the bitcoin market so far would suggest that it's efficient. Low volume, ideological motivations, unstable technologies, few really safe places to store value, etc.
- maaku 14y agoOh, safely storing value isn't a problem: bitaddress.org. Safely storing value while keeping it liquid, there's a problem.
- SagelyGuru 14y agoThis argument does not hold regarding the rate against the dollar. The rate of supply of dollars is massively outstripping the real value of the debt they represent.
- jamesaguilar 14y agoLol. Citation needed. Maybe a graph of inflation or of the dollar devaluing massively against other currencies.
- richcollins 14y agoHow do bitcoins represent debt?
- jamesaguilar 14y agoAll money represents debt that your future payee "owes" you. It's basically a promise of future payment by "society" to you. There was a great Planet Money podcast about the origins of money, which was essentially promissory notes of farmers to provide X units of food in the future, but I'm having a hell of a time finding it now.